Remortgaging can be an excellent way to consolidate your debts or release equity from your home when you need extra funds.
Essentially, remortgaging is when you switch your existing mortgage to a different mortgage agreement. Most often, remortgaging involves switching to another lender as many banks offer their best mortgage deals to new, rather than existing, customers.
If you're thinking about remortgaging your property, but you're unsure of whether it's the right move for your finances, you need to seek professional advice. The FSA's Money Made Clear website is packed with information to help you decide whether it may be the right option for you and where to go to get advice - click here to find out more.
Why opt for remortgaging?
Many people opt for remortgaging because the monthly payments can work out cheaper although the overall amount you pay back may be higher because the payments are made over a longer period, especially if your property has increased in value since you first took out your mortgage, whether due to home improvements you've made or changes in the property market.
If you have many other debts to pay from credit cards or personal loans, remortgaging can be a great method of debt consolidation. Any extra money you have from remortgaging (after you first mortgage loan has been paid) can be used to repay these debts, letting you start again from a financial clean slate.
In addition, if you're hoping to make some renovations to your home, the money released through remortgaging could be the ideal way to fund these improvements.
Finding out more about remortgaging
For impartial help and information on remortgaging or how to get a remortgage, visit the FSA's Money Made Clear website. Alternatively, find out more about debt consolidation loans with Legal Advice Helpline.